Slippage

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What is Slippage? 

Slippage occurs when the price at which an order is executed differs from the expected price. 

 

Explanation: 

It often happens in fast-moving markets where there is high volatility or low liquidity. 

 

Practical Example of Slippage: 

A trader places an order to buy a stock at $50, but due to market volatility, the order is executed at $51.

 

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